Crocs Faces Investigation Following HEYDUDE Revenue Shortfall
Written by Emily J. Thompson, Senior Investment Analyst
Source: Businesswire
Updated: 1 hour ago0mins
- Performance Decline: Crocs reported in its Q3 2024 results that revenues from the acquired HEYDUDE brand fell short of expectations, indicating excess inventory in the market and prolonging the turnaround time, which negatively impacts the company's overall financial performance.
- Legal Risks: Crocs and certain executives are facing a securities class action lawsuit for failing to disclose material information, which could lead to legal liabilities and further undermine shareholder confidence and market performance.
- Investigation Initiated: Kahn Swick & Foti law firm has commenced an investigation into whether Crocs' officers breached their fiduciary duties to shareholders, potentially affecting the company's governance structure and future decision-making.
- Market Reaction: The poor performance of HEYDUDE may put pressure on Crocs' stock price, prompting investors to monitor the ongoing legal developments and their implications for the company's long-term strategy.
CROX.O
$0.0000%Past 6 months
Line
|
Candle
1D
5D
1M
3M
6M
YTD
1Y
5Y
No Data
Powered By
Intellectia
Analyst Views on CROX
Wall Street analysts forecast CROX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CROX is 89.71 USD with a low forecast of 75.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 89.700
Low
75.00
Averages
89.71
High
112.00
Current: 89.700
Low
75.00
Averages
89.71
High
112.00
Seaport Research
Neutral
maintain
2025-11-11
Reason
Seaport Research
Price Target
2025-11-11
maintain
Neutral
Reason
After having hosted a small group call with Crocs' CFO last week, Seaport Research tells investors that the call was partly used to "dig a little deeper" into some of the key topics coming out of Q3 results the prior week. While the firm notes that Crocs' initiatives are weighing on the company's results over the near term - highlighting that while the company is pulling back on the breadth and depth of promotions in North America, it plans a 2 for $50 promotion during key holiday selling periods - the firm believes this is what is best for the business over the long term. The firm maintains a Neutral rating with no price target on Crocs shares.
Barclays
Equal Weight
maintain
$81 -> $86
2025-10-31
Reason
Barclays
Price Target
$81 -> $86
2025-10-31
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Crocs to $86 from $81 and keeps an Equal Weight rating on the shares. The company reported a Q3 beat and its progress on reset actions is a positive, the analyst tells investors in a research note. The firm cites tariffs and a weakening consumer in North America for the neutral rating.
BofA
analyst
Buy
downgrade
$99 -> $98
2025-10-21
Reason
BofA
analyst
Price Target
$99 -> $98
2025-10-21
downgrade
Buy
Reason
BofA lowered the firm's price target on Crocs to $98 from $99 and keeps a Buy rating on the shares. Q2 was "disappointing," but the firm sees a path toward revenue growth bottoming out in Q3 and improving into 2026, says the analyst, who expects management to hit Q3 guidance and expects Crocs brand revenues to sequentially improve in Q4 driven by better international results. The firm is modestly lowering its FY25 EPS estimate by 1% to $11.30 to reflect forex and lower Heydude revenues in Q4, the analyst noted.
Piper Sandler
Overweight -> Neutral
downgrade
$95 -> $75
2025-09-22
Reason
Piper Sandler
Price Target
$95 -> $75
2025-09-22
downgrade
Overweight -> Neutral
Reason
Piper Sandler downgraded Crocs to Neutral from Overweight with a price target of $75, down from $95.
See All Ratings
About CROX
Crocs, Inc. is engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for all. The Company's brands include Crocs and HEYDUDE. The Crocs Brand's collection contains Croslite material, a proprietary, molded footwear technology. It also uses Croslite material formulations in connection with material technologies used in its visible comfort collections, such as its LiteRide and Free Feel Technology products. The HEYDUDE Brand offers shoes with an iconic and versatile loafer silhouette with many wearing occasions that focus on casualization, comfort-led functionality and personalization. It sells its products in more than 80 countries, through wholesale and direct-to-consumer channels. Its wholesale channel includes domestic and international multi-brand retailers, e-tailers and others. Its direct-to-consumer channel includes Company-operated retail stores, Company-operated e-commerce sites and third-party marketplaces.
About the author
Preview
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sigh Up to Get Intellectia Insights
What factors contributed to BetMGM's record performance in Q3 2025?
How has Crocs' international performance offset its North American sales decline?
Will MGM Resorts sustain its earnings growth despite challenges in Las Vegas?
Can Crocs' refreshed product lineup drive significant revenue growth in 2026?